Google loses app store antitrust appeal, must make sweeping changes to Play Store

Google has lost its appeal in the long-running app store antitrust case, which marks another major victory for Epic Games. Google lost the original case in 2023 when a jury found it abused its market position in smartphones to block competition from Epic and others. Google was able to get the penalties suspended while it pursued its appeal, but now it may need to make plans for a more open future on Android.

Since the dawn of the mobile app era, it was customary for both Apple and Google to take a sizable cut of developer revenue, but no one had the resources to challenge the status quo until Fortnite took off. The success of Epic's battle royale title gave it an opening to go after both Apple and Google in 2020. The developer added external payment options to the free-to-play game, causing it to be pulled from both stores. The lawsuit followed soon after.

Epic was unable to secure a victory against Apple, which has an undeniably more restrictive app store than Google. However, the 2023 trial overseen by US District Judge James Donato revealed a pattern of scheming on Google's part to prevent the distribution of alternative app stores on Android phones. While Android devices do allow sideloading of apps, and the platform is open source, Google's scale and partnerships with OEMs made it a de facto monopoly. This led the court to impose extensive remedies that could remake the mobile app ecosystem.

In appealing the case, Google asserted errors in the original trial. The company said the Play Store competes with Apple App Store, but it was not permitted to make that argument to the jury. It also objected to the use of a jury at all, arguing that Epic's lawsuit should have been decided by a judge alone. It also claimed the extensive remedies created by Donato were too expensive and essentially forced it to create new products and services.